Blockchain start-up Paxos has successfully raised $65 million from a series B round of funding, as it looks to accelerate the pace to build a new settlement platform for financial institutions.
The New York-based FinTech firm has secured investment from venture capital firms RRE Ventures and Liberty City Ventures, and has now raised a total $93 million in capital.
The company will use the new resources to significantly scale operations and further the delivery of “modern day settlement solutions to the global capital markets,” it stated.
“This additional funding will further our goals to eliminate settlement risk and expand our product offerings across geographies. We are continuing to invest in expanding our platform that simplifies our financial infrastructure, offers greater control and lays the foundation for the future,” said Andrew Chang, chief operating officer, Paxos.
Founded in 2012 as bitcoin exchange and custodian itBit, the start-up rebranded to Paxos where it shifted its business to focus on providing services using blockchain.
In June 2016, Paxos signed a joint venture with Euroclear to develop a blockchain-based system to settle gold, however a year later it was dissolved.
“Over the past three years, we have focused on building the right infrastructure to enable a modern-day settlement solution that will unlock capital, mobilize assets and create value,” added Charles Cascarilla, chief executive officer, Paxos.
There have recently been a number of major developments in using blockchain for securities settlement around the world, including a Canadian group proving the technology can be used for instantaneous clearing and settlement.